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US call to isolate Iran and Libya snubbed

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Just a day after Parliament said Malaysia would strive to promote good relations with the United States, the Government rebuffed Washington over efforts to isolate Iran and Libya.

The acting undersecretary of the American Division of the Malaysian Foreign Ministry, Arshad Manzoor Hussain, said yesterday Malaysian companies would continue to invest abroad wherever economic opportunities existed, including Iran and Libya.

He said he gave this message to the US deputy assistant secretary of state for energy, sanctions and commodities, William Ramsay, at a meeting on an Iranian gas deal involving Petronas, Malaysia's national oil company, France's Total and Russia's Gazprom.

The US had said it would investigate the companies involved in the deal under the Iran-Libya Sanctions Act, which provides for sanctions against companies investing more than US$20 million (HK$154 million) in either Iran or Libya.

After Malaysia had said it would not co-operate in any investigation of Petronas, the US said Mr Ramsay would merely be exchanging views with the Malaysian Foreign Ministry on the American sanctions act.

Mr Ramsay said his mission was to 'explain the background' of the act.

Mr Arshad said Malaysia did not accept the United States' 'extraterritorial application' of its law.

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